When a congressional committee comes knocking, most firms open their books. 1789 Capital, the venture firm co-founded by Donald Trump Jr., has decided to slam the door instead.
The firm is refusing to comply with a House Judiciary Committee inquiry led by Rep. Jamie Raskin, the ranking Democrat, who wants to know whether political connections influenced the firm's investment outcomes. According to CBS News, attorneys Alexander J. Merton and William A. Burck fired back, rejecting Raskin's demands for confidential business records as "political gamesmanship" and criticizing his "spaghetti-against-the-wall approach."
Raskin launched the probe last month, alleging that several 1789 portfolio companies, including Anduril Industries, Juul, Polymarket, and Vulcan, benefited from "favorable administration decisions."
The Investments In Raskin's Crosshairs
Here's a quick rundown of what's got Raskin's attention:
- Anduril, the defense tech company, saw its valuation soar, partly due to increased defense spending and favorable border-tech policies under the Trump administration.
- 1789 invested in Juul in March 2025. Four months later, the FDA granted full marketing clearance to Juul to keep its e-cigarettes on store shelves.
- Polymarket, once barred from accepting U.S. wagers, received a federal operating license last year. After 1789's investment, its valuation skyrocketed from $300 million to $15 billion.
- 1789 invested in Vulcan when it was worth around $200 million. The company later secured a $620 million loan commitment from the Defense Department, and now it's valued at roughly $2 billion.
The pattern is clear: invest in companies that might benefit from government action, and watch the value climb. But is that influence peddling or just smart investing? Raskin seems to think it's the former.
Deadline Passes
The House Judiciary Committee set a Sept. 9 deadline for 1789 to produce detailed records, including portfolio company information, communications with government officials, and documents related to hiring President Trump's eldest son. The committee also asked for due diligence materials and ordered the firm to preserve communications with Trump administration members, including messages sent through encrypted apps like Signal, WhatsApp, Telegram, and X.
1789 didn't produce the materials. Instead, its counsel argued that Vulcan had federal business dating back to 2024, before 1789's financing round, and described the firm as just one of multiple institutional backers. The response letter accused Raskin of making "unsubstantiated and emotional aspersions" and said he mixed up separate entities and misstated transactions.
It's worth noting that House Democrats have sent multiple information requests to government officials, Trump family members, and related businesses in recent months. But as CBS News pointed out, Democrats lack subpoena power unless they regain the House majority. So for now, this is more of a political volley than a legal showdown.
Whether Raskin's inquiry gains traction or fizzles out, one thing is clear: the intersection of politics and venture capital is getting more scrutiny than ever. And 1789 Capital isn't backing down without a fight.
